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25 S&P 500 stocks have at least 45% price upside over the next year, with CrowdStrike leading at 131.5% fair value upside, according to InvestingPro and
25 S&P 500 stocks have implied upside of at least 45% over the next 12 months or so, according to data from S&P Global Market Intelligence [1]. The forward price-to-earnings ratio on the S&P 500 currently stands at 20, down from 23.5 just a couple of months ago, making stocks about 35% cheaper than they were in February [1].
| At a glance | |
|---|---|
| Implied Upside | 45% or more |
| Forward P/E Ratio | 20 |
| PEG Ratio | less than 0.9 |
| Fair Value Upside Leader | CrowdStrike at 131.5% |
The S&P 500 stocks that could rally the most based on price targets include CrowdStrike, Charter Communications, and lululemon athletica, with fair value upside of 131.5%, 79%, and 78.4%, respectively [2]. These stocks have been identified using InvestingPro's Fair Value metric, which estimates the true worth of a stock, and have a fair value uncertainty level of either Low or Medium [2]. The companies must also be headquartered in the United States, have a market capitalization of at least $8.2 billion, and have positive earnings in the most recent quarter [2].
The top undervalued S&P 500 stocks also include Accenture, Zoetis, Gartner, Amentum, EPAM Systems, PayPal, and Cognizant Technology Solutions, with fair value upside ranging from 61.6% to 70.5% [2]. These companies operate in various industries, including technology, healthcare, finance, and consumer goods, and have been selected based on their fair value upside potential and low or medium fair value uncertainty [2].
The identification of these undervalued S&P 500 stocks highlights the potential for significant gains in the market, despite the current uncertainty and geopolitical instability [1]. As the bull market remains alive, investors may want to monitor these stocks and their fair value upside, as well as the overall market trends and economic indicators.
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AI-assisted synthesis by the TrendWatcher Editorial Desk · sourced from 2 outlets · Aug 1, 2026 · How we report
It is about 2% below the record closing level of 7,609.78 set on June 2.
The forward price‑earnings ratio is 21.26 as of the latest Thursday afternoon data.
Over the past three decades, the S&P 500 has declined an average of 0.5% during August, with larger corrections often occurring in midterm election years.
Investors are reacting to AI‑related earnings reports, mixed results from major tech and non‑tech companies, and geopolitical tensions such as the ongoing Iran conflict.
Unlike the price‑weighted Dow Jones and the Nasdaq’s tech‑heavy composition, the S&P 500 includes a broader mix of large‑cap stocks from both the NYSE and Nasdaq, making it a more reliable gauge of overall market performance.